Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

October 17, 2007 15:11 ET

Prize Mining Enters Option Agreements to Acquire Primrose Moly Project and Red Ridge Project

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2007) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to report that it has entered into option agreements with Larry Bratvold ("Bratvold") and Brian Scott ("Scott") (Bratvold and Scott are collectively referred to the "Optionor") to acquire a 100% interest in the Optionor's Primrose Molybdenum Project and Red Ridge Gold Project.

The Primrose Moly Project consists of 11 mineral claims (4,450 hectares) located in the Atlin mining district, south of Whitehorse, Yukon, near the British Columbia/Yukon border. Under the option agreement, Prize has the right to purchase a 100% interest in the Primrose Moly Project by (a) paying the Optionor a total of $350,000 and (b) issuing to the Optionor 550,000 common shares of Prize, in tranches over the course of the period ending December 31, 2010. Of these amounts, 50,000 common shares have been issued to the Optionors. The first cash payment, being $50,000, is due to the Optionor on December 31, 2008. In addition, Prize is obliged to incur expenditures on the Primrose Moly Project totalling $380,000 over the course of the period ending December 31, 2010 in order to maintain its right to purchase the Primrose Moly Project, of which $30,000 must be incurred by December 31, 2008. The Optionor has been granted a royalty in an amount equal to 3% of net smelter returns in all minerals produced from the Primrose Moly Project. Prize has the option to purchase one-half of such royalty for $2,000,000.

The Red Ridge Gold Project is comprised of approximately 1,400 acres and is located in the Whitehorse mining district of Yukon Territory. Under the option agreement, Prize has the right to purchase a 100% interest in the Primrose Moly Project by (a) paying the Optionor a total of $350,000 and (b) issuing to the Optionor 700,000 common shares of Prize, in tranches over the course of the period ending December 31, 2010. Of these amounts, 200,000 common shares have been issued to the Optionor. The first cash payment, being $50,000, is due to the Optionor on December 31, 2008. In addition, Prize is obliged to incur expenditures on the Red Ridge Gold Project totalling $380,000 over the course of the period ending December 31, 2010 in order to maintain its right to purchase the Red Ridge Gold Project, of which $30,000 must be incurred by December 31, 2008. The Optionor has been granted a royalty in an amount equal to 3% of net smelter returns in all minerals produced from the Red Ridge Gold Project. Prize has the option to purchase one-half of such royalty for $2,000,000.

Additional information regarding both the Primrose Moly Project and the Red Ridge Gold Project will be announced in due course, as the Company continues its review of historical data and current assay results.

About Prize Mining

Prize Mining Corporation (TSX VENTURE:PRZ) is dedicated to the exploration, discovery and development of precious metal deposits. Prize is exploring for gold in the Atlin area of British Columbia, Canada and for nickel-copper-palladium and platinum on the Muskox Layered Intrusion in Nunavut, Arctic Canada.

ON BEHALF OF THE BOARD OF PRIZE MINING CORPORATION

Harry McGucken, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information